Tesla launches a cheaper Model Y RWD option in the US

Ro, 03 October 2023

Shortly after Tesla us dropped the base AWD Model Y option from its configurator, the company adds a rear-wheel drive option that's $3,750 cheaper. It starts at $43,990 and when you apply the full tax credit of $7,500, the actual asking price goes down to $36,490.

Tesla launches a cheaper Model Y RWD option in the US

Some believe that Tesla is using Lithium-iron-Phosphate (LFP) batteries, which are cheaper to produce than Nickel-Manganese-Cobalt (NMC) cells. They are also touted as more durable and more efficient. Perhaps that's the reason Tesla is able to keep the price of the new Model Y so low.

The new trim has 260 miles of range, as opposed to the discontinued AWD option with 279 miles on it. You also can't get the seven-seater configuration on the new RWD and the peak charge rate is set at 170 kW instead of 250 kW supported by the currently existing AWD iterations.


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Reader comments

  • elliott-65

The tire costs for large wheels really irritate me, so I don't like that the Y comes with 19" wheels as the standard choice.

  • Salman A

Now, the new Model Y might not have the same range as the discontinued AWD version, but come on, it's still got a respectable 260 miles. That's more than enough for my daily work, and even some road trips. I ain't complain.

  • julianvdm

"Shortly after Tesla us dropped the base AWD Model Y option from its configurator" Uncapitalised "US," (among other errors in punctuation). Maybe take a little more time to proofread posts, or pass them by an editor before pu...



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